Gold Analysis – Major horizontal resistance is gone

Time for an update about the situation on Gold. Previously, we talked about this instrument on the 3rd of December and we were optimistic about the future of this commodity. This is how we concluded the previous piece:

“Interestingly, we already broke the neckline, which is a legitimate buy signal. Only in the short-term though. For the one in the long-term, we need to see the breakout of the green long-term resistance first. Price closing a day above, will be a proper signal to go long. „

After those words were written, we managed to climb 20 USD higher so the buy signal was spot on! The day after that piece was written, Gold broke the green horizontal line, which is definitely a very important technical factor. Most recently, the price created a pennant (black), which suppose to give us a breakout to the upside but surprisingly, ended with a drop (as we speak!). That does not change the mid-term sentiment though as this one is driven mostly by the green line. As long as we are above, the buy signal is ON and we do have bigger chances for a further rise.